"Bristol-Myers continues to be active in mergers and acquisitions, enhancing its strategic attractiveness to an acquirer or as a break-up candidate," analyst Jami Rubin wrote in a research note.

"The majority of the company's cash is also generated in the United States, increasing both strategic value and flexibility," the analyst added.

Takeovers and spin-offs are now more likely given the blockbuster Pfizer-Wyeth deal announced on Monday, Rubin said.

Pfizer Inc's (PFE.N) proposed $68 billion acquisition of Wyeth WYE.N is expected to be the first in a string of strategic moves to restructure the pharmaceutical industry, Rubin wrote. Rubin has a $27 price target on Bristol-Myers stock.

Shares of the company were up 3 percent at $23 on low volumes before the bell. They closed at $22.25 Monday on the New York Stock Exchange. (Reporting by Esha Dey in Bangalore; Editing by Himani Sarkar)